Is Home Insurance Tax Deductible?
With home insurance rates on the rise, you might be hoping to at least claim the soaring cost as a tax deduction. Here's what you need to know ahead of tax season.
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Homeownership is expensive, so many homeowners are on the lookout for ways to offset the costs and pad their emergency fund. With tax season approaching, one of the best ways to do that is claim tax credits and tax deductions you're eligible for as a homeowner.
While there are many tax breaks for homeowners filing their 2025 taxes — such as mortgage interest or property taxes — home insurance is unfortunately not one of them, except in a few circumstances.
Still, it's worth understanding when and how you can deduct home insurance premiums, in case one of those circumstances applies to you.
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When is home insurance tax deductible?
Home insurance premiums generally aren’t tax-deductible. However, in certain situations, you might be able to deduct all or part of those costs as a business expense, which can lower your taxable income. Those scenarios include:
You have a home office or use your home for business
If you work from home or use it for business purposes — for example, running a day care out of your home — you can claim a portion of your home insurance premiums and other home expenses as a business expense.
You're paying for home insurance on your rental properties
If you own rental properties, your home insurance premiums will also count as a business expense, helping to lower your taxable income. Keep your personal and business records separate, and consult a financial adviser or tax professional for trickier situations, such as renting out your vacation home for part of the year.
One related change to watch starting in 2026 involves private mortgage insurance (PMI). Under new tax rules, PMI tied to home purchase loans will be treated as deductible mortgage interest for taxpayers who itemize.
That means some homeowners who pay PMI and itemize their deductions might be able to deduct those premiums going forward.
However, this applies to mortgage insurance — not standard homeowners insurance — and won’t affect 2025 tax returns. Income limits and other eligibility rules might also apply, so it’s worth checking with a tax professional before assuming you’ll qualify.
Keep track of all of your home expenses anyway
While you generally can’t deduct homeowners insurance premiums, other housing-related expenses might qualify for tax breaks.
Certain mortgage-related costs that aren’t deductible today might become eligible again in future tax years, depending on legislative changes. Keeping good records of your home expenses can help you stay ready to take advantage of any savings opportunities that open up.
In the meantime, you can offset the cost of protecting your home by shopping around for lower premiums. Use the tool below, powered by Bankrate, to see how much you could save on home insurance:
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